Martin Feldstein, Harvard University economics professor/Council of Economic Advisors former chairman, says there is no question that Greece will default. Feldstein also says the weakness in the U.S. is not due to banks exposure to Europe.
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Mr Feldstein said that our banks are in good shape? Did he mean that they are pretty bldgs? Bank of America was just downgraded lower then Citi. A news item today is that Bank of America is shoveling derivatives from their Merill Unit to the bank proper. That way, i guess the thinking goes, if they fail – the FDIC can pay for it with the peoples money.
And i still haven’t ever heard of what happened to the toxic assets of 2008. Were they swallowed up into some gigundus accounting eddy? Isn’t Mr. Feldstein concerned about that? I am.